Item 19 Isn't Required — Here's What That Means for You

Item 19 of the FDD is where a franchisor can disclose financial performance representations — sales, profit, or expense figures for their existing locations. Most prospective franchisees assume this is a required part of every FDD. It isn't. Under the FTC Franchise Rule, financial performance representations are entirely optional, and a franchisor who chooses not to disclose them only has to state that plainly in Item 19.

Roughly two-thirds of franchisors now choose to include Item 19 data, which means close to a third still don't. That's not automatically a red flag — some brands are too new to have meaningful data, and others simply choose the legal path of least resistance — but it does mean the burden shifts to you to get real numbers another way.

If Item 19 is blank, your next move is Item 20 — the unit count and closure history — plus direct outreach to current and former franchisees. Franchisors are legally required to give you contact information for their franchisees in the FDD; using it is one of the highest-value hours you'll spend before signing anything.

A franchisor declining to include Item 19 tells you something. What it doesn't tell you is whether the opportunity is good or bad — that part still requires doing the legwork yourself, or having someone do it with you.